Watch what you do with that big data, FTC warns businesses

Also important is that the report recognizes that predictive analytics may lead companies to engage in discrimination that violates civil rights laws, Goodman pointed out.

"While it rightly urges companies to be careful not to discriminate, self-monitoring is not enough," Goodman said. "We need systems for auditing the proprietary algorithms that make crucial decisions about housing, credit and employment, in order to ensure that they treat everyone fairly."